Failing Health Care Co-ops Will Cost Taxpayers

Consumer Operated and Oriented Plan Programs (COOPs) were really a political compromise between Members of Congress who wanted a public plan option and those who didn’t. Once the Affordable Care Act passed, COOPs had outlived their usefulness. However, they are now failing and will cost taxpayers plenty. Senior Fellow Devon Herrick testified before a congressional committee.

Medicaid Reform Service Center

Goals. The Medicaid Reform Service Center provides organizations, including State Policy Network (SPN) members, with the best and latest information on state Medicaid reform. The NCPA also provides the support and expertise necessary to help facilitate significant Medicaid policy changes at the state level.

Need. Medicaid is the single largest item in virtually every state's budget. The country as a whole spends more on Medicaid than it spends on primary and secondary education. We also spend more on Medicaid (for the poor) than we spend on Medicare (for the elderly). Without reform, Medicaid is on a course to consume the entire budgets of state governments in just a few decades.

Background. NCPA Senior Fellow Michael Bond is considered the architect of Medicaid reform plans in Florida and South Carolina. These reforms are significant because they allow states to introduce competition and create access to private health insurance for Medicaid enrollees, while also controlling spending and providing the necessary incentives for enrollees to become wise consumers of health care.

In addition, the NCPA produced a series of publications on Medicaid reform, including NCPA's most recent study, "Medicaid Empire: Why New York Spends so much on Health Care for the Poor and Near Poor and How the System Can Be Reformed." In 2003, NCPA released "Reforming Medicaid," a major study on national Medicaid reform, calling for a "pro-patient" approach to health care. The NCPA also co-authored a study with the Buckeye Institute called "Reforming Medicaid in Ohio: A Framework for Using Consumer Choice and Competition to Spur Improved Outcomes."

Project Specifics. The Medicaid Reform Service Center initiative is comprised of two parts:

SPN/Medicaid Exchangeis a Web-based, biweekly e-newsletter primarily focused on Medicaid. It provides updates on reform efforts and other developments in all 50 states.

The Medicaid Reform Service Center helps meet the needs of state-based organizations that are striving to reform their state's Medicaid program by offering levels of service and financial assistance. Here is how the program works:

1. NCPA solicits requests and offers assistance based on the following criteria:

Does the state-based initiative have a reasonable chance at success?

Does the organization share NCPA's goals for Medicaid reform?

Is the organization capable of spearheading the initiative and sharing in the cost?

Case Study: Kansas. In February 2006, the Flint Hills Institute released Bond's comprehensive design for Medicaid reform in Kansas. NCPA worked with the Flint Hills Institute and provided financial assistance for this project. Bond's plan offers an initial roadmap to assist Kansas' policymakers in reforming Medicaid into a cost-effective and quality-driven program. Since last fall, Michael Bond has been at the forefront of Medicaid reform debates in Kansas, meeting with legislators, media and health care professionals. In November 2005, he testified before the Kansas Medicaid Reform Committee and he testified before the Kansas Health Policy Authority Oversight Committee in February 2006.

Level III. Includes Level I and Level II services plus NCPA assistance with research programs, major publications/studies, outreach or other technical expertise. NCPA will also assist with submitting Section 1915 HIFA waiver requests to the Centers for Medicare and Medicaid Services.

Medicaid Reform Service Center Personnel.

John C. Goodman is Founder and President of the National Center for Policy Analysis. The National Journal recently dubbed him the "Father of Health Savings Accounts," and he has pioneered research in consumer-driven health care. Dr. Goodman is the author/coauthor of eight books and more than 50 published studies on health care policy and other topics. He received a Ph.D. in economics from Columbia University. He has taught and done research at several colleges and universities including Columbia University, Stanford University, Dartmouth University, Southern Methodist University and the University of Dallas.

Michael Bond is a Senior Fellow at the National Center for Policy Analysis. Bond is also the Director of the Center for Health Care Policy at the Buckeye Institute and professor in the Department of Finance at Cleveland State University. His work on Medical Savings Accounts (MSAs) and health-care policy reform has received national attention and appeared in a wide range of professional and popular publications, including Health Care Financial Management, Public Personnel Management, Compensation and Benefits Review, Benefits Quarterly and Business Horizons. He is the author of the nation's first practical guide to establishing MSAs (published by the Buckeye Institute in 1997). He earned his Doctor of Philosophy degree and Master of Arts degree in economics from Case Western Reserve University.

Devon M. Herrick is a Senior Fellow with the National Center for Policy Analysis. He concentrates on such health care issues as Internet-based medicine, health insurance and the uninsured, and pharmaceutical drug issues. His research interests also include managed care, patient empowerment, medical privacy and technology-related issues. Herrick received a Ph.D. in Political Economy and an MPA degree from the University of Texas at Dallas with a concentration in economic development. He also holds an MBA degree with a concentration in finance from Oklahoma City University and a Master of Business Administration degree from Amber University, as well as a Bachelor of Science degree in Accounting from the University of Central Oklahoma.